BTC Statement: Senate budget "fiscally irresponsible"

This budget harms the foundations of economic growth, sets stage for tax plan which will force most to pay more

STATEMENT FROM THE NC BUDGET & TAX CENTER

RALEIGH (May 23, 2013) — The budget passed by the Senate today is fiscally irresponsible. Senators approved a spending plan without details on how they will pay for it. Instead, they put in a place-holder for their tax plan that will cost $770 million over two years, meaning higher taxes for middle- and low-income North Carolinians, and cuts to investments that are vital to our state’s economy.

Senate leaders haven’t given North Carolinians many details on the tax plan, but we do know that the majority of North Carolinians will be paying more, while taxes for the wealthy and profitable corporations will be cut. Because of the huge price tag, the state will have to make damaging cuts to things families and our economy depend on, like our neighborhood schools and world-class universities which build a skilled workforce and encourage innovation.

There’s no question that the inability of Senate leaders to rebuild the foundations of economic growth in this budget was due to these damaging tax cuts, not Medicaid costs as some have claimed. .